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The heavy losses came as it was hit by £490million of charges, including a £225million write-off at its loss-making mobile phone business.

Baldock is shutting 102 Carphone Warehouse stores as customers hold on to their handsets for longer, denting demand for new phones.

Baldock has been critical of how the company was run under David Cameron's old friend Seb James, who is now chief executive at High Street pharmacist Boots.

Just over two months into the role Baldock revealed Dixons Carphone had suffered a huge data breach in 2017, affecting 10m customers. It has quadrupled its data security budget since the scandal, but refused to disclose how much it was spending.

He has also shaken up the leadership structure, with three top directors being forced out.

The retailer will expand its range by stocking more small electricals such as coffee grinders, to grab a larger slice of the market.

It is ramping up investment in training and has installed 'gaming bunkers' in stores where customers can try out the latest gaming PCs and accessories.

Baldock said: 'We want to make our stores magnets for discovery and palaces for people who have got half an hour to spare and know they'll head straight into a Currys or PC World because they know there's going to be something exciting there.'

Despite cutting the dividend, the firm will hand more than 30,000 staff at least £1,000 of shares to motivate them.

Richard Hunter, head of markets at Interactive Investor, said: 'Unfortunately, this statement has laid bare that Dixons has many plates to spin when competition is intensifying.

The presence of the likes of Amazon means Dixons is likely to lose on price, such that it needs to differentiate itself in other ways.'